Germany/Austria: White label lodge administration firm Revo Hospitality, previously referred to as HR Group, has filed for insolvency and is to be restructured beneath its personal administration by the summer time.
The corporate cited “elevated wage prices and the sharp rise in minimal wages, but in addition larger prices for lease, power and meals” as contributing elements to the insolvency. “Above all, the robust growth of the Revo Hospitality Group in recent times led to duplicate constructions and integration issues,” it stated.
In 2008, Revo (then referred to as HR Group) took over its first lodge in Leipzig. By 2020, the group operated 51 lodges after which expanded to its present 250 properties.
“The acquisition of the brand new lodges concerned appreciable prices. However, the variety of in a single day stays didn’t improve as anticipated and the deliberate turnover for 2025 was not achieved,” the corporate stated.
Roughly 125 lodges in Germany and Austria are affected, together with 5,500 employees members. All will proceed to function in the course of the restructuring.
Revo has utilized to the Federal Employment Company for pre-financing of wage funds protecting January to March 2026, with the intention of guaranteeing payroll continuity.
Gordon Geiser and Benedikt de Bruyn of GT Restructuring will oversee the self-administration proceedings. Geiser and de Bruyn plan to method worldwide buyers to discover a “long-term answer… in an effort to obtain the absolute best satisfaction for collectors.”
“Self-administration allows fast stabilisation and an orderly transition to an investor with out considerably limiting the quite a few lodge operations,” stated de Bruyn. “With the initiation of insolvency proceedings, the curiosity of buyers, which has been noticeable thus far, is prone to improve even additional. We’re due to this fact assured that we will rapidly resolve the financial issues of the affected corporations of the Revo Group by the summer time.”
It’s unclear how the insolvency will have an effect on the broader portfolio, which incorporates metropolis lodges and serviced flats operated beneath Revo’s personal manufacturers in addition to franchise agreements with lodge chains. The 2 largest franchisors are Wyndham and Accor.
Highlights:
White-label lodge operator Revo Hospitality (previously HR Group) has filed for insolvency in Germany and Austria, with restructuring deliberate beneath self-administration by summer time 2026
Round 125 lodges and 5,500 workers throughout the 2 nations are affected, with all properties persevering with operations throughout proceedings
The group cited rising wage, lease, power and meals prices, alongside fast growth and duplicated constructions, as key elements behind the insolvency
Revo grew from 51 lodges in 2020 to roughly 250 properties, however in a single day stays and projected 2025 revenues fell wanting expectations
Restructuring can be overseen by GT Restructuring, with efforts underway to safe worldwide buyers and guarantee payroll continuity by way of state-backed pre-financing
